However, he would not provide a dollar figure, breaking course with his stance during the last election campaign when he called for a minimum 5.1 per cent increase in line with the inflation rate at the time.

While the major parties have backed increasing the wages of Australia’s lowest-paid workers, its ultimately up to the commission to make the call during its annual wages review, which is usually handed down in June. Any changes would typically come into effect on 1 July.

Who could be affected?

“It can have an influencing effect on other workers too.”

Source: SBS News

Betashares chief economist David Bassanese believes almost one in two workers could have their wages either directly or indirectly influenced by minimum wage increases.

The wage price index, which measures changes to wages and salaries, was up 3.2 per cent in the 12 months to December 2024.

Can wage increases lead to inflation?

“So I can’t see much of a boost to inflation,” he said.

“Nominal wage growth has run well ahead of it — resulting in relatively high growth in unit labour costs,” he said.

Source: SBS News

Labour productivity was also a talking point for the Reserve Bank this week.

After its decision on Tuesday to keep the cash rate unchanged it wrote: “Wage pressures have eased a little more than expected but productivity growth has not picked up and growth in unit labour costs remains high.”